The price of Bitcoin continues to decline, with it currently trading below the $27,000 mark, indicating the potential for further downsides below the crucial support levels of $26,500 and $26,200.
Bitcoin’s downward trajectory persists, displaying bearish signals as it remains below the $27,000 threshold and the 100-hourly Simple Moving Average. On the BTC/USD hourly chart sourced from Kraken, two bearish trend lines are taking shape, with resistance zones positioned near $26,950 and $27,400. This trend suggests the possibility of the pair continuing its descent towards the $26,000 support level in the immediate future.
Bitcoin’s Value Continues to Decline
Bitcoin struggled to initiate a recovery surge above the $27,500 resistance level, remaining firmly entrenched in bearish territory as it descended further below $27,000.
The price dipped below the $26,800 mark, subsequently testing the $26,500 support, and forming a low at approximately $26,551 before making another attempt at a recovery. While there was a minor uptick above $26,800, the price continues to face numerous obstacles.
Currently, Bitcoin is trading below both $27,000 and the 100-hourly Simple Moving Average, with two bearish trend lines emerging on the BTC/USD hourly chart, featuring resistance zones near $26,950 and $27,400.
Immediate resistance is positioned near the $26,950 mark and the first trend line, closely mirroring the 23.6% Fibonacci retracement level of the recent downward movement from the $28,284 swing high to the $26,551 low. The subsequent crucial resistance level may be around $27,400, aligning with the second trend line.
The second trend line coincides with the 50% Fibonacci retracement level of the decline from the $28,284 swing high to the $26,551 low. The initial significant resistance point stands at $27,500, along with the 100-hourly Simple Moving Average, and a successful breach of this level could potentially lead to a test of $27,800.
The primary obstacle remains at $28,500. A decisive breakthrough above the $28,500 resistance level has the potential to trigger another upward move. In such a scenario, the price might advance towards the $30,000 resistance level.
Will BTC Experience Further Declines?
If Bitcoin’s recovery stalls and it remains below the $27,000 resistance, there’s a possibility of further declines. Immediate downside support can be found around the $26,650 level.
The next significant support level is located near $26,500. A break below and a close beneath the $26,500 support could potentially drive the price lower. The subsequent support level stands at $26,000.
Technical indicators:
Hourly MACD – The MACD is currently displaying a slowdown in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD has dipped below the 50 level.
Key Support Levels – $26,650, followed by $26,500.
Key Resistance Levels – $27,000, $27,400, and $27,500.